Hail Damage - Which Insurance Company Pays?

[robjaime]

Long story short, we had a huge hail storm in our area in October 2014. We switched insurance companies in December 2014. I have finally gotten around to having my roof inspected. Hail & wind damage were found. My current insurance company came out today, assessed damage, and agreed to give us new roof & gutters. He then called later to say that he found no storms in our area since December (when we became their customer). We never lapsed in coverage, so which company is responsible to pay? If it's our old company since we were covered by them when the storm hit, are they liable still since we are no longer their customer? Please help!

 

[BADTROUT]

Long story short, we had a huge hail storm in our area in October 2014. We switched insurance companies in December 2014. I have finally gotten around to having my roof inspected. Hail & wind damage were found. My current insurance company came out today, assessed the damage, and agreed to give us new roof & gutters. He then called later to say that he found no storms in our area since December (when we became their customer). We never lapsed in coverage, so which company is responsible to pay? If it's our old company since we were covered by them when the storm hit, are they liable still since we are no longer their customer? Please help!

You have what's called an occurrence-based policy meaning its dependent on WHEN the incident happened will be your deciding factor. In this case, it sounds like it would be your prior carrier so yes, they were under contract at the time the loss occurred and will be the ones that need to pick up your claim.

Please bear in mind I am not an adjuster, and I make no "its going to be covered" assertations unless I see a contract... but, by the info you have offered, it sounds like it will in fact be your prior carrier.

 

[adjusterjack]

which company is responsible to pay? If it's our old company since we were covered by them when the storm hit, are they liable still since we are no longer their customer?

I'm a retired property claims adjuster. You failed to comply with your policy provisions:

Duties After a Loss.
In case of a loss to covered property, we have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us. These duties must be performed either by you, an "insured" seeking coverage, or a representative of either:
1. Give prompt notice to us or our agent;
5. Cooperate with us in the investigation of a claim;

Four and a half years is certainly not prompt and the failure to report promptly certainly prejudiced the insurance company's right to investigate. A lot could have happened to your roof in four and a half years.

Your former insurance company would be within its rights to deny your claim due to breach of contract.

Whether they will or won't is impossible to predict. All you can do is ask.

You failed to reveal your state so I'll just give you one example. In Texas it has long been established by the courts that

Compliance with the provision that notice be given "as soon as practicable" is a condition precedent, the breach of which voids policy coverage. Dairyland Mutual Ins. Co. of Texas v. Roman, 498 S.W.2d 154 (Tex. 1973); Members Mutual Insurance Co. v. Cutaia, 476 S.W.2d 278 (Tex. 1972); New Amsterdam Casualty Co. v. Hamblen, 144 Tex. 306, 190 S.W.2d 56 (1945); Klein v. Century Lloyds, 154 Tex. 160, 275 S.W.2d 95 (1955); Latham v. Mountain States Mutual Casualty Co., 482 S.W.2d 655 (Tex. Civ. App.-Houston [1st Dist.] 1972, writ ref'd n.r.e.); Carroll v. Employers Casualty Co., 475 S.W.2d 390 (Tex. Civ. App.-Beaumont 1971, writ ref'd n.r.e.).

See Caddell v. Travelers Lloyds of Texas:

Caddell v. TRAVELERS LLOYDS OF TEXAS INSURANCE COMPANY, Tex: Court of Appeals, 6th Dist. 2007 - Google Scholar

This was a case in which the insured reported hail damage 3 months after the storm and Travelers successfully defended on the basis of failure to report promptly.

So, four and a half years is likely to be significantly problematic.

Reveal your state and I'll see if I can find appropriate case decisions.